In order to strengthen foreign competitive sales capabilities and expand exports, in my country’s export business, it is necessary to appropriately adopt the collection method for different commodities, different trading partners and trade practices of different countries and regions. If used properly, it is also beneficial. In order to effectively use the collection method, the following matters must be noted:
(1) Investigate and consider the credit status and business style of the importer, and the transaction amount should be properly controlled and should not exceed its credit limit.
(2) Understand the trade control and foreign exchange control regulations of the importing country (region) to avoid losses caused by the prohibition of import or the failure to receive foreign exchange after the goods arrive at the destination.
(3) Understand the business practices of the importing country (region) to avoid the safety and rapidity of the collection of foreign exchange due to local practices.
(4) The export contract should strive to be concluded on the terms of CIF or CIP, and the exporter shall handle the freight insurance or purchase export credit insurance. When CIF or CIP terms are not adopted, seller’s interest insurance should be purchased.
(5) For transactions involving collection, a sound management system should be established, regular inspections should be conducted, and timely collection and clearance should be carried out. If problems are found, measures should be taken promptly to avoid or reduce possible losses.